Half of financial institutions choose client compensation over web fraud protection

Tuesday 15 July 2014 00:07 CET | News

52% of financial companies reimburse customer losses caused by internet fraud, without actually investigating the circumstances, a recent report shows.

According to a survey conducted by Kaspersky Lab together with B2B International in 2014 around the world, including the GCC region, almost one third of companies believe the costs incurred by cyber threats are less than the cost of protection.

This results in many organizations that work with online payments being prepared to accept the additional costs that arise from cyber-attacks. Findings reveal that 28% of the representatives from financial companies and 32% of the online store employees that answered the survey believe that the total losses from online crime do not exceed the costs of deploying security solutions. Only 19% of financial companies and 7% of online marketplaces disagree, stating that the cost of reimbursing customer losses is one of the most serious consequences of cyber-fraud.

The numbers indicate nearly 4 million users of Kaspersky Lab products to have encountered financial malware that attempted to steal their money in 2013, registering a growth of 18.6% since 2012. In December 2013, a number of North American banks suffered losses of more than USD 200 million as a result of customers bank card details and personal data being leaked.

In what concerns consumer negligence, the survey points out that 57% of users pay little to no attention to the security of their online payments, believing that all the necessary measures are taken by their bank.

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Keywords: financial institutions, client compensation, web fraud protection, internet fraud, Kaspersky
Categories: Fraud & Financial Crime
Countries: World
This article is part of category

Fraud & Financial Crime